McDonald’s, the world’s largest fast-food chain, is embarking on an ambitious plan to open 10,000 new stores globally by 2027, aiming for what it calls the “fastest period of growth” in its history. The initiative is anticipated to result in nearly 2% growth in system-wide sales from the new establishments, with 900 of these restaurants set to open in the United States, and the remainder planned for international locations.
In addition to the expansion plan, McDonald’s is set to forge a partnership with Google to implement artificial intelligence (AI) and automation in its restaurants. The collaboration aims to leverage generative AI to accelerate the incorporation of automation and assist employees in finding faster solutions to operational challenges.
As part of its strategic developments, McDonald’s is also focusing on menu enhancements. The company is rolling out a “Best Burger Initiative” across nearly all its markets by 2026, aiming to elevate the quality of its burgers. Moreover, McDonald’s is investing in its growing chicken business, with plans to expand its McCrispy chicken sandwich to almost all markets by 2025.
The announcement was made during McDonald’s Investor Day, where Manu Steijaert, the company’s Chief Customer Officer, highlighted the significant growth trajectory. Steijaert mentioned that it took McDonald’s 33 years to open its first 10,000 restaurants and an additional 18 years to grow from 30,000 to 40,000. He attributed the current growth surge, in part, to the increasing demand for delivery services, predicting that 30% of the company’s deliveries would originate from its app by 2027.
The emphasis on automation and AI is a strategic move by McDonald’s, reflecting the broader trend in the industry. In December, the company introduced its first partly automated test store, where orders were placed at kiosks and delivered through a conveyor belt. While met with mixed reactions, McDonald’s asserted that the automation would enhance efficiency for its human kitchen staff rather than replace jobs.
McDonald’s is not alone in exploring AI applications, with other fast-food chains like Wendy’s testing AI chatbots to assist customers in drive-thru orders. The new push into automation aligns with McDonald’s broader strategy for operational efficiency and meeting evolving consumer demands.
Additionally, McDonald’s unveiled details about its new CosMc’s restaurant concept, which focuses on beverages and is positioned to compete with chains like Starbucks. The limited test of the CosMc’s concept has commenced with the opening of the first location in Illinois, with plans to expand to 10 pilot locations by the end of the next year. The move reflects McDonald’s commitment to diversifying its offerings and adapting to changing consumer preferences.
